U.S. stocks post worst day since July on hot inflation, tech selloff

U.S. stocks fell sharply Wednesday as hotter-than-expected inflation data and a tech selloff drove the Nasdaq down 1.9% and the S&P 500 down 1.1%, their worst one-day drops since July. Core consumer prices rose 0.3% in September, exceeding the 0.2% forecast, briefly pushing odds of a Federal Reserve rate hike in October to 50% before settling at 35%. The 10-year Treasury yield hit 5.329% intraday before closing at 5.189%. Technology shares fell for a second day, with CoreWeave dropping over 15% and the PHLX Semiconductor Index down 10% over six sessions. Selling hit debt-heavy data center firms amid competition concerns and Broadcom's CEO comparing AI investing to a casino.